Exam 11: Investment Basics

The two types of securities offerings in the primary markets are ________ and ________.

Stock can only be purchased in round lots.

What type of broker can protect your investments from systematic risk?

Purchasing derivatives is a form of speculating.

Liquidity risk is a very important part of the time dimension of investing.

Brokerage firm reports

The OTC market is a link-up of dealers,with stringent listing and membership requirements.

Which of the following investors will potentially receive dividends on their investments?

As a young college graduate,your biggest investment ally is

A catastrophic loss is less critical to an older investor than it is to a younger investor since younger investors typically have less money to lose.

General Electric is the only stock originally listed and still remaining on the "Big Board." This means that its stock is traded on the

As the length of your investment horizon increases,you can assume greater risks with your investing.

During the economic downturn that occurred between the fall of 2007 and spring of 2009,stocks declined in price.This period is known as a(n)

Real estate investments are more liquid than stocks most of the time.

Which of the following questions is relevant to setting investment goals?

Examples of political and regulatory risk include

For the international investor,exchange rate risk is simply another layer of risk.

An individual selling previously issued shares to another individual is a transaction that would be traded in the primary market.

The Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988 made it illegal to trade while in the possession of inside information,or "material" non-public information held by

Historical rates of return for the last 82 years place ________ at the highest end of the spectrum for risk and ________ at the lowest end for risk.